Investors with a short-term perspective can consider buying Dena Bank. The downtrend in the stock that had begun from the June 2014 peak of ₹94 appears to have come to a halt as it took support in the zone between ₹55 and ₹57 in late August.
This support band played a key role in keeping the stock on hold by providing a strong base. The stock subsequently changed direction to trend northwards, triggered by positive divergence in the daily moving average convergence divergence indicator. Strengthening the near-term upmove, the stock surged 3 per cent, accompanied by above-average volumes on Monday. It is hovering well above its 21- and 50-day moving averages. The daily relative strength index has entered the bullish zone. Both the daily and weekly price rate of change indicators are featuring in the positive terrain. The short-term outlook for the stock is bullish. It can extend the rally to ₹66.5 or to ₹67.5. Buy the stock with a stop-loss at ₹62.3.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.